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July 19, 2013

Former Economy Minister Pablo Longueira of the Independent Democratic Union (Unión Demócrata Independiente—UDI) withdrew from the Chilean presidential campaign on Wednesday just weeks after winning the June 30 primary of the incumbent Alliance for Chile (Alianza por Chile) coalition. His son, Juan Pablo Longueira, informed the press that his father had been suffering from severe depression and could no longer be a part of the race. The election will be held on November 17, 2013.

The Alianza coalition must now overcome any internal divisions to choose a new candidate to run against former President Michelle Bachelet, the Nueva Mayoría pact’s candidate.

According to a survey released on July 12 by El Diario La Segunda and Universidad del Desarrollo Ms. Bachelet has a 39 percent approval rate among likely voters.

Possible Alianza candidates include Labor Minister Evelyn Matthei of the UDI and former Defense minister Andrés Allamand of the National Renewal (Renovación Nacional—RN). According to Carlos Huneeus, director of Centro de Estudios de la Realidad Contemporánea, “the task is daunting for those who want to run against Bachelet.” Longueira entered the race just three months ago after the center-right candidate and businessman, Laurence Golborne, dropped out due to a financial scandal.

July 12, 2013

Thousands of protestors—with estimates as high as 150,000 people—marched through the streets of Santiago yesterday to voice their frustrations over social inequality, living wages and the country’s pension system. The demonstration was part of a nationwide strike organized by Chile’s largest labor union, the Central Union of Workers (Central Sindical Unitaria de Trabajadores - CUT) demanding a raise in the monthly minimum wage from $380 to $490, improved labor conditions, tax reform, and a replacement of the privately managed pension system with a state-run one.

The protestors halted traffic during the morning rush hour, causing major delays in Santiago, and set a public bus on fire after the bus driver and passengers disembarked. Sixty-seven people were arrested. Miners also joined in the protests, and blocked the entrance to the world’s largest copper mine, National Copper Corporation of Chile (Corporación Nacional del Cobre de Chile – Codelco). Approximately 15,000 plant workers and another 30,000 contractors were called to participate in the strike. The company estimated a $41 million loss as a result.

The president of the National Association of Public Employees (Asociación Nacional de Empleados Fiscales - ANEF), Raúl de la Puente, asserted that 90 percent of the 100,000 public-sector employees took to the streets, in contrast to the government’s figures that only 6.4 percent (10,200) of public sector workers joined the strike.

These labor strikes took place amid ongoing and escalating social tensions surrounding Chile’s education system, with students demanding free, quality higher education.

July 9, 2013

Former President Michelle Bachelet, the Nueva Mayoría pact’s candidate for Chile’s November presidential election, expressed her support on Monday for legalizing abortion in cases of medical emergency and rape. Her opponent, former Economy Minister Pablo Longueira and candidate for the incumbent Alianza por Chile coalition, has vowed to maintain the current policy of prohibition.

Reproductive rights has risen to national attention in the midst of outrage following news last week that a pregnant 11-year old Chilean girl—raped by her mother’s partner in the southern city of Puerto Montt—faces life-threatening complications from her pregnancy. The girl, identified only as Belén, has few legal options since abortion is banned in Chile under all circumstances.

Chile is one of the most socially-conservative countries in Latin America and has one of the most restrictive abortion policies in the world. Abortions for medical reasons were allowed until 1973, but then outlawed under Augusto Pinochet’s military rule. Despite the restriction, reports from the Ministry of Health estimate that around 150,000 abortions take place in Chile each year. However, President Sebastián Piñera has opposed loosening the prohibition. In 2012, the Senate rejected three bills that would have ended the absolute ban.

Bachelet Wins Chilean Opposition Primaries: Former Chilean President Michelle Bachelet won a landslide victory on Sunday in Chile’s primary elections, paving her way to run as the Concertación candidate in the November presidential election. Bachelet received 73.8 percent of the vote, while her nearest rival, Andrés Velasco, earned only 12.5 percent of voter support. The ruling coalition's candidates were much closer, with Pablo Longueira getting 51.1 percent of the vote to Andrés Allemand's 48.9 percent. Longueira will face Bachelet on November 17.

Cuban State-Run Co-ops Go Private: One hundred state-run produce markets in Cuba are scheduled to become private cooperatives on Monday as the country moves ahead with economic reforms. The private co-ops will create an alternative to small and medium-sized state-run businesses, and will be able to set prices and divide profit as they see fit. The co-ops can also purchase produce from individual farmers as well as state farms and wholesale markets. According to the Cuban government, more than 430,000 people now work in the non-state sector, not counting agricultural cooperatives and small farmers.

Protests at Brazil's Confederations Cup Final: Several thousand Brazilian protesters marched outside Rio de Janeiro's iconic Maracanã stadium on Sunday as Brazil's national soccer team won the Confederations Cup 3-0 over Spain. The protests for improved public transport and services that started over a month ago show no sign of abating, while President Dilma Rousseff's approval rating has plummeted from 57 percent to 30 percent during the month of June. More than 80 percent of the 4,717 respondents in the poll by Datafolha, conducted on the June 27 and 28, said that they supported the protests in Brazil.

Immigration Reform Moves to the U.S. House: U.S. Senator Chuck Schumer predicted on Sunday that the Republican-controlled House of Representatives will pass the comprehensive immigration reform bill approved by the Senate last Thursday, despite resistance from House Republicans. Schumer said he believed the House would pass the bill "by the end of this year," due to concerns about the party's future in an increasingly diverse country. However, House Judiciary Committee Chairman Bob Goodlatte said that the preference is to “examine each of these issues separately,” rather than take up the Senate legislation.

Edward Snowden Still Stuck in Moscow: Ecuadorian President Rafael Correa said that former U.S. contractor Edward Snowden "is in the care of Russian authorities" and reprimanded an Ecuadorian government official who provided Snowden with a travel document that Correa said had been issued without consulting officials in Quito. Correa spoke to U.S. Vice President Joe Biden on the phone on Saturday about Snowden, whose U.S. passport has been revoked. Correa said that Snowden’s asylum request would only be considered if he enters Ecuador or an Ecuadorian embassy.

June 28, 2013

Twenty-three years after the fall of Augusto Pinochet, on the surface at least, Chile’s democratic institutions appear strong. However, less than five months out from presidential elections, many Chileans feel more disillusioned with the political process now than at any point since the return to democracy.

In the lead up to the November 17 vote, the country will hold historic primary elections on Sunday. Accompanying them, over the last two weeks, were televised debates—the first to include candidates from the two major political coalitions.

Both the primaries and debates are being touted as a marked change from the vieja politica—“old school” politics which, for 23 years, has seen remarkably little policy difference between politicians who held positions under the dictatorship and those who took up arms against it, or in some cases were victims of its repression.

For those within the established political system and mainstream media, the changes herald a new era of inclusive politics and represent a response to the demands for profound change from social movements sweeping the country.

Written by Juan Emilio Cheyre—commander-in-chief of the Chilean Army from 2002 to 2006, academic and member of Servicio Electoral (Electoral Service—Servel) board of directors—the article concluded:

“The primaries are important in and of themselves. However, we [Sevel] believe that, in addition, they represent a great step forward in areas as relevant as: trust, public confidence, transparency, depoliticization, autonomy and participation[…] All of these are factors have a direct impact on strengthening our democracy, a task to which, as a country, we have been called upon to undertake.”

But to read the polls, the nation’s political class has never been more distant from the general public since Chile famously voted “No” to military rule in 1989.

June 13, 2013

On Wednesday, representatives of the Bolivian and Chilean governments met for the first time at the International Court of Justice (ICJ) in The Hague for a preliminary meeting to establish the timetable and other details for a case around a long-standing disagreement over the countries’ maritime borders.

Bolivia filed a formal lawsuit against Chile with the ICJ in April, demanding that the court force Chile to negotiate in good faith to provide land-locked Bolivia a sovereign outlet to the Pacific Ocean. Bolivia lost access to the sea in 1904, when it signed a treaty to end the War of the Pacific—a war sparked by conflict over mining rights. Bolivia is seeking land that is currently part of Chile’s Atacama region.

During Wednesday’s meeting—the first step in a long process before the case actually comes before the court—former Bolivian President Eduardo Rodríguez Veltzé met behind closed doors with Chilean Ambassador to the United States Felipe Bulnes to discuss dates and other logistics for the proceedings.

After the meeting, Chilean Foreign Minister Alfredo Moreno denounced the lawsuit as unfounded, upholding Chile’s decades-long dismissal of Bolivia’s territorial claim. Meanwhile, the Bolivian government maintains that the 1904 treaty was signed under pressure from Chile and is therefore invalid.

If the case goes forward, this will be the first internationally arbitrated attempt to solve the dispute. Previous negotiations have failed and the two countries have never re-established diplomatic ties since they lapsed after a previous failed negotiation in 1978.

March 11, 2013

As the world grapples with generating employment, growth and innovation, a new club of countries has emerged as an engine of regional growth. Through improved governance, liberalized trade and stable macroeconomics, the economies of Mexico, Colombia, Peru, and Chile have rallied in recent years.

Rather than following the lead of the increasingly protectionist and interventionist Mercosur countries, these Pacific economies have taken their cues from the Asian tigers of the 1980s, quietly becoming economic overachievers. Given the rise of China and the American pivot to the East, the Puma countries are poised to play a significant role in the emerging Pacific century.

Statistically, the Pumas are growing by leaps and bounds. They have averaged 4.69 percent annual growth since 2005. The Colombian, Chilean and Peruvian middle classes expanded more than 10 percent between 2000 and 2010, while some estimate that the Mexican middle class already accounts for more than half the population. Inflation, a great scourge of Latin American economies, has been held within central-bank bands across the Puma economies. Puma sovereigns are investment grade, and their issuances are hot.

On paper, the Pumas roar. But what is driving these figures, and are they sustainable?

February 25, 2013

Top stories this week are likely to include: Cuba prepares for political successors in 2018; Venezuela’s opposition protests lack of information on Chávez; Tensions between Chile and Bolivia rise over Bolivian soldiers’ arrest; Oscar Arias visits Paraguay for OAS elections observations; and Cerrejón strike continues after explosives destroy trucks.

Raúl Castro Says he'll Step Down in 2018: On Sunday, Cuban President Raúl Castro told the Cuban National Assembly that he will step down at the end of his upcoming five-year term as president in 2018. Revolutionary icon Fidel Castro, whose public appearances are now rare, was present when his brother made the announcement putting an official end-date on an era of Castro rule that began in 1959. Raúl Castro then named Miguel Diaz-Canel Bermúdez, 52, his first vice-president. The younger Castro had indicated on Friday that he was thinking of retiring and might name a successor from among the next generation of Cuban politicians.

Venezuelan Opposition Demands Information as Chávez' Health Remains Uncertain: Hundreds of government opponents marched in Caracas on Saturday as part of the opposition’s new political offensive to protest the current political stasis in Venezuela as President Hugo Chávez remains out of sight in a military hospital. Since returning from Cuba on February 18, the Venezuelan government has shared limited information about the president’s cancer treatment and prognosis. On Friday, Venezuelan Vice-President Nicolás Maduro said that Chávez was “energetic” and had participated in a five-hour meeting with government leaders, though he acknowledged that the president can't speak because he is breathing through a tracheal tube. Meanwhile, Chávez supports held candlelit vigils outside the presidential palace to pray for the president’s recovery.

Oscar Arias Visits Paraguay to Prepare for April Elections: Former Costa Rican President Oscar Arias is visiting Asunción, Paraguay, until February 27 as head of the Electoral Observation and Political Accompaniment Mission of the Organization of American States (OAS). The mission aims to facilitate and monitor Paraguay’s presidential elections on April 21 to ensure that they are free and fair. It will be setting up elections observers and meeting with members of the Paraguayan government for the next two months. A number of the country’s neighbors view Paraguayan President Federico Franco as illegitimate due to the controversial impeachment of his predecessor, former Paraguayan President Fernando Lugo, in June 2012. Members of Mercosur and Unasur elected to suspend Paraguay from regional membership until the elections are held.

Explosives Destroy Trucks at Cerrejón while Mining Strike Continues: Unknown assailants detonated explosives at the Cerrejón coal mine in Colombia on Sunday as a strike that began on February 7 continued into its seventeenth day. Both Cerrejón and the leader of Sintracarbon, the coal miners' union, denounced the attack, which damaged four trucks but reportedly did not result in casualties. Cerrejón workers initially demanded a 7 percent pay raise, but they have since decreased that amount to 5.8 percent. According to the World Coal Association, Cerrejón’s coal accounted for 80 percent of Colombia’s coal exports last year. Union leader Igor Diaz said that the workers will meet with Cerrejón today to restart wage negotiations despite the attack.

January 29, 2013

Natural resource extraction is a key contributor to economic growth in various parts of the Western Hemisphere, but governments, businesses and civil society are faced with how to improve extractive activity and its effects on broad-based socioeconomic development in respective communities. A special section in the Winter 2013 issue of Americas Quarterly, released today, includes photo essays and analysis to look at these challenges and compare the potentials and pitfalls for the natural resource industry in Chile, Colombia and Peru in four critical areas: community relations and consulta previa (prior consultation); value-added economic development; the nature of governance and public management; and the environment.

In the case of consulta previa, although Convention 169 of the International Labour Organization—on the right of Indigenous and tribal peoples to prior consultation—has been ratified by 20 countries, most of which are Latin American nations, the accord is still subject to competing interpretations by community leaders and governments.To maximize success and mitigate conflict, the AQ special section urges all stakeholders to view consulta previa as a regular process throughout the life of the exploration or exploitation project, and for businesses to broaden the scope of consultative mechanisms beyond extraction’s original impact zone.

The special section also suggests that governments and businesses work together to ensure a positive impact of extractive industry over national economies. By leveraging tax and royalty resources, governments can attract investment and promote local innovation. It cites Chile as a model in terms of its Fondo de Innovación para la Competitividad (Innovation Fund for Competitiveness). However, clear priorities for social policy and investment must be in place to ensure an equitable resource distribution.

In addition, despite some progress in economic and community development over the life of extractive industry in the three countries, governments and businesses still lag behind in protecting the environment from the negative effects of mining exploration. The AQ section asks governments to boost the capacity and strengthen the authority of federal environment ministries and for businesses to monitor energy consumption levels and seek creative ways to reduce them.

In addition to the photo essays and analysis, an exclusive AQ documentary looks at a proposed project by the coal mining company Cerrejón to move an entire river 16 miles (26 kilometers) and the effects that would have on the Wayúu Indigenous community that lives alongside it .